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What Does Car Insurance Cover – Insurance coverage for car insurance solely becomes the reason why many people insured their car. Damages and lost due to natural disaster such as earthquake, flood, volcano eruption or because of theft, strike, collison and others unfortunate events, car insurance may cover those damages and ensure the owner of the car safety.

Determining car insurance suitable for your needs is important due to all risk attached in car insurance. For example car insurance gives coverage for one or two years only. There is still a chance that you lost all insurance money if you do not suffer any lost or damages as mention in the insurance agreement. Since you need to dive deeper into your pocket to have this kind of protection, it is advisable that you take wise precaution before deciding to apply a car insurance. So, what Car does insurance cover in car insurance that benefits you the most?

Insurance Coverage

There are two coverages to answer the question what does Car insurance cover for car insurance?

Total Lost Only

Total Lost Only or TLO can be issued when there is thievery or damages up to 75 % to the insured car. Unfortunately, if your car have damages less than 75 % in collison or accident, insurance company has no obligation to pass your claim. TLO coverage will not do for  new cars because you will absolutely at a lost. What does car insurance cover if you only have 75 % of the amount money worthy of your new car? 

Total Lost Only coverage is best applied for those who have old cars for these cars will be in maximum protection from major damages and thievery. The amount money given by car insurance company will suitable  for the owner.

Combined (Comprehensive) Coverage

What does car insurance cover for combined (comprehensive) coverage? It is maximum protections. This coverage is known as all risk coverage which protects insured car from any damages, minor and major damages. All risk coverage can be claimed due to scretched body, interior damage, or any minor damages to your insured car. Major damages are due to natural disaster (flood, earthquake), terrorism, civil commotion, strike, collison, theft, and sabotages. 

All risk coverage  is very suitable for the new car owner as they want to protect the car from any kind  of damages. The descriptions of what does car insurance cover above will be your guide to help you detemined which most suitable car insurance for your precious car.